The host of popular crypto YouTube channel InvestAnswers says a historical indicator is suggesting that one Ethereum (ETH) challenger is ready to turn heads.
In a new video, the pseudonymous analyst says that he’s bullish on suntrap but that SOL faces considerable resistance at the $150 mark.
“We are about to touch the 200-day moving average. We do expect, after such a huge run, a little bit of what I call a breather, which is normal. And the 200-day moving average also coincidentally is at the Fibonacci 0.5 level, which is about $150. Getting above $150 may take a little bit of effort but the strength has been mind-blowing over the last 18 days.”
The analyst shares a chart from Delphi Digital depicting a divergence between the price of SOL and its rising relative strength index (RSI), which is generally considered bullish by technical analysts as the signal suggests increasing buy-side momentum.
He says that if history is any indication, SOL could be in for some serious price appreciation.
“Here, you can see they put together a chart that focuses on two things… The RSI divergence on Solana is at a very interesting opposite observation they painted here. You can see the red boxes at the bottom of the RSI. When the RSI goes above 70, it’s a very bullish time, because historically, Solana has gone bonkers when that happens.
The other thing, they refer to an ‘SR,’ and that is basically the SR flip [which] is when the previous resistance flips into support and support flipping into resistance.
So the big takeaway here is that you will see each time in the red boxes on the left… Each time the RSI jumps above 70 it is typically in the overbought area after a strong price uptrend. But, when you look back in time, when this happened back in August 2021, when RSI broke above 70, Solana rallied 400%, and similarly, when in May and June 2021, it had a 268% upside. Not saying that’ll happen now, but these fractals appear similar to how Solana has been performing lately.”
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Source: https://dailyhodl.com/2022/04/04/historically-accurate-signal-suggests-this-ethereum-rival-is-ready-to-go-bonkers-says-crypto-analyst/